When a project faces an unplanned cost need (hiring additional resources) and there is no approved additional budget, the project manager should first evaluate available reserves that are already authorized within the project’s overall funding structure. Management reserves (C) are typically controlled by management and may be used for unforeseen work that is within project scope but not covered by contingency reserves. The PM should initiate the process to access those reserves according to governance, enabling timely action to protect a mandatory deadline. Asking the sponsor for more funds (A) may ultimately be required, but it is not the first step if reserves exist and can be used within established authority paths. Introducing a change request (B) can be appropriate if the action changes baselines or exceeds thresholds; however, the immediate “first” funding source check is reserves. Updating baselines to accommodate delay (D) does not address the mandatory deadline and is not funding. Properly applying reserves supports schedule recovery while remaining aligned with formal cost control and escalation procedures.

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